Inherited Roth IRA
What is the RMD requirement for a minor beneficiary of a Roth IRA? Is he or she subject to the 10 year rule the same as an adult beneficiary?
What is the RMD requirement for a minor beneficiary of a Roth IRA? Is he or she subject to the 10 year rule the same as an adult beneficiary?
Permalink Submitted by Alan - IRA critic on Mon, 2020-11-02 15:28
If the beneficiary is a child of the IRA owner, the 10 years does not start until the child reaches the age of majority. Other minors are subject to the 10 year rule unless they are disabled, chronically ill, or not more than 10 years younger than the deceased IRA owner. For an inherited Roth IRA, it is best to let the account grow until the final year since a lump sum distribution will not be taxable.
Permalink Submitted by Bob Lloyd on Mon, 2020-11-02 16:59
If I read this correctly my 10 year old beneficiary grandchild who does not meet one of the exceptions mentioned will be subject to the 10 year rule starting immediately upon my death. Am I correct?
Permalink Submitted by Alan - IRA critic on Mon, 2020-11-02 18:44
Yes, you are correct. The 10 years starts on 1/1 of the year following the year of your death.